Administration October 12, 2003

Employee Stock Options Grants at Life Sciences Companies Reduced by 30%

December 10, 2003 (PLANSPONSOR.com)— On average, in the last fiscal year, stock options at life sciences companies equaled 2.6% of the company's total shares outstanding, a decrease from the 3.3% average recorded for the previous three years, according to the Presidio Pay Advisors - Life Sciences Industry Compensation study.
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Possible reasons cited for this decrease are because legislation has been discussed to expense stock options, companies are finding other equity incentives to offer to employees, as only 27% of executives included in the study received equity incentives in the form of restricted stock.

The study also includes information on:

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  • equity compensation
  • overhang and run rates
  • non-shareholder-approved plans
  • evergreen plans and additional share requests   
  • ownership levels for executives and outside directors      
  • executive compensation
  • Top Six Positions: Median Pay Levels and Prevalence         
  • CEO compensation: by revenue size and industry sector
  • board of director compensation
  • director compensation
  • committee compensation

Presidio Pay Advisors – Life Sciences Industry Compensation study included data on stock option and equity incentive practices and Executive and Board of Director compensation levels in over 60 companies within the Dow Jones Biotechnology Index.

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